Vietnam has cut its average retail electricity price by 2% and removed the special consumption tax on gasoline from 1 November, in a package aimed at supporting economic stability and reducing costs for households and businesses.
The average retail electricity tariff falls to 2,159.9 dong (about $0.085) per kilowatt-hour, excluding value-added tax, the government said in a statement on Saturday. The special consumption tax on gasoline, previously between 7% and 10% depending on the grade, has been cut to zero from 1 November until the end of March next year.
Pump prices fell as the tax change took effect. The government’s price announcement put E5 RON92 gasoline down by about 1,800 dong per litre and E10 RON95-III down by about 1,580 dong per litre, while diesel prices were unchanged.
The government said the decision was intended to help maintain macroeconomic stability while supporting social welfare and business activity. Deputy Prime Minister Nguyen Van Thang told the National Assembly that state utility Electricity of Vietnam (EVN) had been directed to review its costs urgently so the electricity cut could be sustained through March 2027.
The measures sit alongside other inflation-fighting steps, including an advance from the state budget to the Petroleum Price Stabilisation Fund, cuts to taxes and fees on petroleum products, and the continuation of a 2% value-added tax reduction through the end of 2026. Officials estimate the electricity and gasoline measures together create about 0.07 percentage points of extra room to hold inflation to the National Assembly’s 4.5% target, after average consumer prices rose 4.52% in the first nine months of the year.
The relief also comes as Hanoi chases growth of above 10% for the full year, a target that requires expansion of more than 12.5% in the fourth quarter. Growth reached 9.95% in the third quarter and 9.01% over the first nine months, but independent forecasters remain sceptical: Singapore-based UOB has raised its 2026 forecast to 9.2% while judging the fourth-quarter pace needed for 10% as unlikely to be achieved.
Two caveats are worth noting. The electricity figure is an average retail price, so not every household’s bill will fall by exactly 2%. And the size of the saving at the pump will still depend on world oil prices, exchange rates and how the price stabilisation fund is used.
Sources: Reuters, “Vietnam cuts retail electricity price, removes gasoline tax from November 1” (https://www.reuters.com/business/energy/vietnam-cuts-retail-electricity-price-removes-gasoline-tax-november-1-2026-10-31/).
